This is how I do it too, but I still run into small discrepancies when I check my work against online calculators. Is there a specific formula you use in Excel/Google Sheets? I feel like I'm still missing something.

I use nested IF statements in Excel to determine which portion of income falls into each bracket. For example: For the 12% bracket: =IF(Income>12350,IF(Income>=50175,50175-12350,Income-12350),0)*0.12 This says "if income is greater than $12,350, then either take the full bracket amount ($50,175-$12,350) if income exceeds the top of this bracket, or just take (Income-$12,350) if income falls within this bracket. Multiply the result by 12%." Do this for each bracket, then sum them all up. The key insight is treating the upper boundary as inclusive (using >= for comparing to the upper limit), so $50,175 gets taxed at 12%, not 22%. This matches official IRS calculations exactly.

Actually, precision matters here. While the final tax amount is rounded, the calculations themselves need to be exact. I learned this the hard way when my "close enough" spreadsheet ended up being off by $237 compared to my actual return because of accumulated small errors in multiple bracket calculations.

Thank you so much for this info! I do see a 290 code dated one week after the 570/971 codes. There's a small amount next to it (about $120 less than my expected refund). I'm guessing that means they're reducing it by that amount? My cycle code does end in 05 so I'll check again tomorrow to see if there are any updates.

Yes, that's exactly what it means. The $120 reduction is likely a correction they made to your return. This is actually good news because it means they've completed their review and are moving forward with processing your refund with just that small adjustment. Since your cycle code ends in 05, definitely check your transcript again tomorrow. You'll likely see a TC 846 code with your refund amount and direct deposit date. Most people see their money hit their account within 5-7 days after the TC 846 appears.

Transcripts are ALWAYS more accurate and detailed than the "Where's My Refund" tool. WMR only shows three basic statuses (received, approved, sent), while transcripts show you exactly what's happening behind the scenes. Many times my WMR would show "still processing" while my transcript showed they were already preparing to issue a refund.

That's great advice, wish I'd thought of that earlier! Do you also recommend sending a check instead of a money order for tax payments? I've been using money orders but wondering if checks are better for tracking purposes.

I always use checks instead of money orders for tax payments because they give you an extra layer of proof. When your check clears, you have both the tracking delivery confirmation AND your bank statement showing they cashed it. With money orders, you have to go through more steps to prove it was cashed. Also, if there's ever a dispute about WHEN you paid, the date the check was cashed is clear evidence. Just make sure to write your tax ID number and the tax form number in the memo line of the check to help them process it correctly.

Yes! I switched to paying online last year and it's WAY easier. Go to AZTaxes.gov and create an account. You'll need your SSN, last year's tax info, and a bank account for direct debit. Once registered, you can make payments for Form 140, estimated taxes, and even set up payment plans. They send confirmation emails for everything so you have proof of payment too.

I hadn't even thought of that angle! I was so focused on the mistake that I didn't consider it might actually work in my favor. My income will probably be a bit lower in 2023 since I'm planning to take some unpaid leave, so this might actually push me into a lower bracket. Do you know if this affects other income-based things like student loan payments or healthcare subsidies? I'm worried it might have ripple effects beyond just my tax return.

Great question about the ripple effects. Yes, this can absolutely impact income-based programs. If you're on an income-based repayment plan for student loans, your payments are typically calculated based on your prior year's AGI (Adjusted Gross Income), so this could potentially lower your 2022 AGI and reduce your payments for 2023. For healthcare subsidies through the Marketplace, those are based on your estimated current year income. So if you're receiving subsidies, you might need to update your projected 2023 income to include this bonus, which could reduce your subsidy amount. It's always better to report changes proactively than to have to pay back subsidies at tax time.

That's actually a common misunderstanding about tax brackets. Moving into a higher bracket only affects the portion of income above that threshold, not all your income. So only the amount that pushed you over would be taxed at the higher rate, not your entire yearly income.

I used Cash App Taxes (formerly Credit Karma) last year and it was completely free, but they don't support every tax situation. If you have multiple state returns, rental income, or foreign income, they can't handle it. Do you know if they support cryptocurrency transactions? I did some small trades this year.

Cash App Taxes is still completely free for both federal and state returns as of 2025. I just checked their site yesterday to confirm. They do support basic cryptocurrency reporting, but it's somewhat limited. If you made just a few trades, it should work fine. But if you have extensive crypto activity, you might need a different service. For multiple state returns, you're right - they don't support that at all. You need to have income from just one state for it to work properly.

Do you e-file these forms or mail them in? I tried doing the PDF route a few years ago but couldn't figure out how to actually submit them electronically without paying someone.